How to Report a Fraudulent POS Transaction in Nigeria
You paid for something through a POS terminal, but something went wrong.
Maybe your account was debited twice.
Maybe the POS agent claimed the transaction failed even though your account was debited.
Or perhaps you never authorised the transaction at all.
Whatever the situation, don't simply walk away and hope the money comes back.
You can formally dispute the transaction through your bank and, where applicable, the payment system's dispute-resolution process.
Here is what to do.
First, understand what kind of POS problem you have
Not every POS dispute is necessarily fraud.
Your situation could be:
Your account was debited but the merchant says they did not receive the money.
You were charged twice for one purchase.
You were charged the wrong amount.
The transaction was reversed incorrectly.
The POS agent refuses to return money from a failed transaction.
You did not authorise the transaction.
A POS agent processed a transaction without your consent.
The exact resolution can depend on the type of transaction and how it was processed.
For example, the CBN says that where a customer's account is debited but the merchant has not received the alert or receipt, established procedures exist between the banks to determine the transaction status and either release the goods or reverse the customer's debit.
Step 1: Keep your evidence
Before doing anything else, gather as much information as possible.
Keep:
Transaction date and time
Amount debited
Your bank/account
POS agent or merchant name
POS terminal location
Terminal ID, if available
Transaction reference/RRN, if shown
SMS or banking-app alert
POS receipt
Screenshot of the debit
Any WhatsApp/SMS conversation with the agent
If you received a POS receipt, do not throw it away.
The transaction reference can make it easier for your bank to trace the payment.
Step 2: Contact your bank immediately
This is the most important step.
Contact the bank that issued the card or account that was debited.
Tell the bank that you want to dispute a POS transaction.
You can usually start through your bank's:
Customer-care line
Mobile app
Email
Branch
Chatbot
Complaints/help desk
CBN says customers should first lodge complaints with their financial institution and obtain a complaint or tracking reference.
What should you tell the bank?
Be specific.
Say something like:
“I want to dispute a POS transaction on my account. My account was debited ₦___ on [date/time], but [explain what happened]. I have the transaction reference and evidence.”
Don't simply say:
“The POS didn't work.”
Explain exactly what happened.
Step 3: Ask for a complaint reference number
This is extremely important.
After reporting the transaction, ask your bank for the:
Complaint/reference/tracking number.
Keep it somewhere safe.
That number proves that you formally reported the dispute and allows you to follow up.
CBN's complaints portal specifically instructs customers to obtain a complaint reference/tracking number from their financial institution before escalating through the CBN complaints system.
Step 4: Don't assume you have to chase the POS agent's bank yourself
This is one of the most important things consumers should know.
You may know the POS agent's bank because the terminal belongs to that bank or payment provider.
But you generally shouldn't have to walk into that bank and start the dispute yourself.
Your bank is the starting point.
For card-based POS transactions, the CBN's Industry Dispute Resolution System provides a centralised dispute and chargeback mechanism involving the relevant issuing and acquiring institutions.
In simple terms:
You → Your bank → Payment/dispute system → POS agent's/acquiring institution → Resolution
The acquiring institution can review the transaction and respond to the dispute through the industry process. NIBSS's IDRS documentation shows that acquiring institutions can accept or reject disputes and that accepted disputes can lead to refunds to cardholders.
Step 5: Ask your bank to trace the transaction
Your bank should be able to use the transaction information to investigate what happened.
Give them:
Amount
Date
Time
Transaction reference
POS terminal information
Merchant details
Your evidence
If you have the RRN (Retrieval Reference Number) or another transaction reference, provide it.
It can help the bank identify the specific transaction.
Step 6: Don't let the POS agent convince you that the bank cannot help
You may hear:
“The transaction failed.”
or:
“It is not showing on my POS.”
That does not necessarily mean the matter is over.
If your account was debited, report it to your bank.
The bank can investigate the transaction status.
The CBN has specifically stated that procedures exist for handling POS disputes where the customer's account was debited but the merchant did not receive the transaction value.
Step 7: If it was an unauthorised transaction, treat it as fraud
If you never authorised the POS transaction, don't describe it merely as a “failed POS transaction.”
Tell your bank:
“This is an unauthorised transaction.”
Contact the bank immediately and ask them to secure your account/card and investigate the transaction.
CBN advises customers who suspect fraud to contact their financial institution immediately, including for freezing accounts and reversing unauthorised transactions.
If you believe your card details or PIN may have been compromised, ask your bank about blocking the card and securing the affected account.
Step 8: Follow up using your complaint number
Don't report the issue once and forget about it.
Use your complaint reference to follow up.
Ask:
Has the dispute been logged?
Has it been sent to the acquiring institution/payment processor?
What is the current status?
Is additional evidence required?
When should I expect an update?
Keep records of every interaction.
If you speak to customer service, record the date, time and the name or identification of the representative where available.
What if your bank does not resolve the complaint?
You have an escalation route.
CBN's official complaint process says you should first complain to your financial institution. If the institution fails to resolve the complaint within the applicable timeline, you can escalate the matter to the Consumer Protection Department (CPD) of the Central Bank of Nigeria.
CBN's complaints portal also provides an online route for tracking complaints after they have first been lodged with the financial institution.
Keep your bank's evidence
When escalating, you may need:
Your complaint reference number
Bank statement
POS receipt
Transaction alert
Screenshots
Correspondence with the bank
Evidence that you first complained to the bank
CBN specifically says complaints should contain details such as the date of the disputed transaction, amount claimed and supporting documents, while customers should not include their PIN or password.
What NOT to send to anyone
Even while trying to recover your money, protect your banking information.
Never send a supposed “POS dispute officer” your:
❌ ATM PIN
❌ Mobile-banking password
❌ OTP
❌ Full card security details
❌ BVN unnecessarily
❌ Internet-banking login
A legitimate dispute investigation should not require you to reveal your banking password or OTP to a random person.
CBN also advises customers to protect confidential banking information and notes that banks have a responsibility to protect customers against unauthorised access.
What if the POS agent asks you to send the money again?
Don't immediately do it.
First verify what happened with your bank.
If your account has already been debited, making another payment could result in you paying twice.
Get confirmation of the original transaction status before paying again.
A simple example
Imagine you buy something for:
₦50,000
The POS terminal says:
“Transaction failed.”
You check your bank app.
Your account has been debited ₦50,000.
The agent says:
“It will reverse later.”
Instead of relying only on the agent, you should:
1. Screenshot the debit.
2. Keep the POS receipt if available.
3. Record the transaction reference.
4. Contact your bank.
5. Report the transaction as a POS dispute.
6. Get a complaint/reference number.
7. Follow up until the dispute is resolved.
If the transaction was genuinely unsuccessful, the relevant institutions can investigate its status and process the appropriate reversal where applicable.
The most important thing to remember
If a POS transaction goes wrong, the POS agent is not your only route to a solution.
Your bank is your first formal point of contact.
And if the bank does not resolve the complaint within the applicable timeline, you have the right to escalate through the CBN's consumer-protection process.
Save this checklist
POS transaction dispute checklist:
☑️ Screenshot the debit
☑️ Keep the receipt
☑️ Record the transaction reference
☑️ Note the POS agent/merchant details
☑️ Contact your bank
☑️ Report the dispute
☑️ Get a complaint reference number
☑️ Follow up
☑️ Escalate to CBN if the bank fails to resolve it within the applicable timeline
☑️ Never share your PIN, password or OTP
Don't just wait for the money to “reverse itself.” Report the transaction and create a formal paper trail.
